Global upcoming VAT rate changes

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Chronological overview of scheduled and proposed VAT/GST rate changes worldwide

Source: VATupdate.com · Position as at 19 August 2026. Country names link to the underlying VATupdate.com news item.

17 – 31 August 2026

Poland — Final – adopted, published in the Journal of Laws (temporary)
Motor fuels cut from 23% → 8% for 17–31 August 2026 (specified petrol, diesel and qualifying biocomponents by CN code), alongside daily maximum fuel prices. Rate reverts to 23% after 31 August 2026.

1 October 2026

Kenya — Final – reduced fuel rate extended
Reduced VAT on petroleum products held at 8% (gasoline, kerosene and diesel), extended until 14 October 2026 rather than reverting to the 16% standard rate.

Moldova — Final – tiered reform replacing the planned flat 20% hike
Low-value e-commerce: imported parcels below €150 become subject to 20% VAT from 1 October 2026. Part of a wider tiered reform (see also 1 April 2027).

Thailand — Final – Cabinet approved (royal decree)
Reduced VAT held at 7% instead of reverting to the 10% statutory rate; extended to 30 September 2027. Applies to all sales of goods, services and imports.

United Kingdom — Final – announced 21 July 2026 (temporary to 31 March 2027)
Domestic electricity cut from 5% → 0%. Great Britain only (Northern Ireland stays at 5% under the Windsor Framework). Also benefits eligible small businesses, charities and residential care homes.

1 January 2027

Denmark — Draft – re-tabled by government, pending Folketing approval
Books (printed books, e-books and audiobooks) cut from 25% → 0%, aligning with the existing zero rate for newspapers. Enabled by Council Directive (EU) 2022/542.

Peru — Final – end of the reduced hospitality regime
Hospitality sector (restaurants, hotels and accommodation) IGV rises from 8% → 12%. Including the 2% municipal promotion tax (IPM), the effective rate moves from 10.5% to 15%.

1 April 2027

Croatia — Final – reversion (5% relief enacted only to 31 March 2027)
Energy supplies revert from 5% → 13% unless further extended. Covers natural gas, district heating (incl. related fees) and wood fuels (firewood, pellets, briquettes, wood chips).

Jamaica — Final – approved in the 2026/27 budget (deferred to Apr 2027)
General Consumption Tax (GCT) on tourism activities raised from 10% → 15%, and extended to short-term rentals (e.g. Airbnb, Booking). Deferred to April 2027 due to Hurricane Melissa recovery.

Moldova — Final – tiered reform replacing the planned flat 20% hike
Tiered energy rates take effect. Under the wider reform, essentials are taxed at 8% and agri-food, HoReCa and tourism at 12%, in place of the previously planned flat 20% VAT.

United Kingdom — Final – scheduled reversion (extension to be reviewed at Autumn Budget)
Domestic electricity reverts from 0% → 5% at the end of the 2026–27 financial year, unless extended.

1 October 2027

Thailand — Scheduled default – subject to likely further extension
Reduced rate scheduled to revert from 7% → 10% (statutory rate) once the current relief expires on 30 September 2027. Successive governments have extended the 7% rate for nearly three decades.

1 January 2028

Sweden — Final – scheduled reversion (temporary cut ends 31 December 2027)
Foodstuffs revert from 6% → 12% when the temporary cut expires. Takeaway food follows the food rate; on-premises restaurant/catering service stays at 12% throughout.

Switzerland — Draft – parliament approved, pending mandatory referendum (Nov 2026)
Standard rate 8.1% → 8.5% and hotel accommodation rate 3.8% → 4.0% to help fund the 13th state pension. The reduced 2.6% rate on food, medicines and essentials is unchanged.

No firm date – proposals under discussion

Bangladesh — Draft – government plan, rate not yet set
Plan to replace the fragmented 5% / 7.5% / 10% reduced rates with a single uniform VAT rate for small businesses, to simplify compliance and widen the VAT net.

Egypt — Draft – proposed amendments
Medical devices proposed to fall from 14% → 5%, with a VAT exemption for inputs, parts and supplies for dialysis machines and kidney filters, to lower healthcare costs.

Russia — Draft – under consideration
Reduced rate under consideration for highly automated (autonomous) passenger, courier and cargo transport, 22% → 10%, to support the emerging sector.

Notes

Status is shown as Final (adopted/enacted or Cabinet/parliament approved) or Draft (proposed, under discussion or pending referendum/approval). Reversions of temporary reliefs are shown at their scheduled expiry.

Only changes with a supporting VATupdate.com news item are listed. Where a detail (e.g. exact scope) was not confirmed on the source, it has been omitted rather than assumed.

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